Daytraders only

[deaddog]

Really? I trade ES and 1 tick is all I need to cover the entire commision (round trip).

When I traded ES I counted on a couple tics slippage.

 

[schizo]

When I traded ES I counted on a couple tics slippage.

You sure it ain't YM or NQ? I've been trading ES for like 20 years and it has the tightest spread. Only times you would see a big slippage for ES is when the market is in a free fall, like 2 months ago when the coronavirus news hit the market. Otherwise, use the limit order if you're so concerned about slippage.

BTW your reply has no relevance to my earlier post. You need only make 1-tick profit to cover your entire commission. So to say you shouldn't daytrade because of high commission is utter nonsense.

 

[Slope Trader]

I went the other way. I found sitting in front of a computer all day more stressful. Granted you can get caught with a gap against you but you also profit now and then with a gap in your favour.

I am able to make my decisions after the market is closed. I spend maybe 30 minutes a day record keeping, scanning and planning trades for the next day. I don't have to make decisions on the spur of the moment.

Set it and forget it bracket orders made just after the open and then the rest of the day can be spent doing something else. Market opens at 6:30 am so I pretty well am done trading by 6:40.

I found that my returns were very similar.

"It never was my thinking that made the big money for me. It always was my sitting." Jesse Livermore

Regarding the stress issue, I'm with Deaddog as I swing trade using daily charts. Only instead of 6:30 in the morning, I look at charts around 5:00 PM, when currency futures have closed for the day and are re-opening.

Analyzing the charts, placing new stop entry orders, and moving stop-loss orders on existing trades takes about 30 minutes and is pretty stress free.

No time pressure and no major psychology issues involved is a major plus.

I use mechanical systems but trade them manually, plus I have a day job, and swing trading has always been the best option for me.

 

[deaddog]

BTW your reply has no relevance to my earlier post. You need only make 1-tick profit to cover your entire commission. So to say you shouldn't daytrade because of high commission is utter nonsense.

I agree; Especially with no commission brokers for stocks.

 

[Heydrrich]

U lose jn few hours what we can lose in few months

same position size assuming which usually jot the case usually your position size is bigger ir worse

but these r opinions

day trading like a corporate job u clock in 9-4pm every time
Lol

You can do both

 

[systematictrader]

You can do both

true that but then its overtime hahaha

 

[Evermore2017]

Daytrading worst enemy are commissions. If you can find a certain setup with enough volatility then good,if not it will really eat into profits.

Now with zero commission brokers we only pay reg fees.

 

[guowei58]

just do both swing and day trading...why not? both should be profitable if you believe in your system. maximize the usage of your margins...if you view trading as a business, it would make sense to use all your resources and time to generate a profit, no?

 

[Sekiyo]

Agree for the commissions part.

Exemple:
1%*0.6-1%*0.4 = 20% edge.
0.6-0.4 = 20% Bet Size
Bankrol 25K

Let’s say that on the ES ...
The daytrader looks for 5pts risk reward
While the swing trader looks for 50pts risk reward.

ES point is 50$
So the daytrader will buy 20 contracts,
While the swing trader will buy 2 contracts.

Remember that expectancy is the same (20%)
Or 4% per trade (20% * 20%)
Which is 1000$ (25K * 4%)

However the commissions ...
For the daytrader is 80$ (20 * 4$)
For the swing trader is 8$ (2 * 4$)

So the net edge ...
For the daytrader is 920$ (1000$-80$) or 3.8%
For the swing trader is 992$ (1000$-8$) or 3.9%

Everything else being equal ...
The bigger size the smaller the difference.
It makes a big difference on a 100$ expectancy.